Starting next year, Social Security benefits will rise 1.7 percent — or about $20 a month based on an average monthly Social Security payment of $1,192. That increase, or cost-of-living adjustment (COLA), has been pegged to the consumer price index (CPI) since 1975. It’s one of several ways to measure inflation. So, how do we measure the CPI?
More than 50 million Americans get a social security check every month. But some Democrats and liberal groups are upset about a proposed change in the way the cost of living adjustment is calculated. Making a switch could save more than $100 billion in 10 years.